The real estate developer is planning a fund set on investing in “opportunity zones,” a new feature of the tax code passed by Congress late last year that allows investors to defer or avoid capital gains taxes when they invest in designated under-invested areas.

Bloomberg reported RXR plans to raise the $500 million fund primarily through high net-worth individuals. According to an investor presentation cited by Bloomberg, RXR already has a few development projects in suburban locations like New Rochelle and Glen Cove that would be eligible for the tax benefit.

There are 8,700 eligible opportunity zones which were nominated by governors in all 50 states, Washington D.C. and overseas territories. The new tax benefit does not require housing built to be affordable to low-income residents.

While some have the cheered on the zones as way to bring more development to underserved communities, Bloomberg notes that others have questioned whether the new tax rules simply give developers more ways to dodge taxes for projects they would have built anyway. [Bloomberg]— Will Parker